Government will seek to raise ¢1.17 billion in this week's Treasury bill auction to refinance the upcoming T-bill maturities of ¢1.08 billion.
In the T-bill auction last week, the government secured ¢1.98 billion, missing its target marginally. Although last week's auction marked the fifth successive under subscription, the government exceeded its refinancing obligation as demand improved over the previous auction.
The surge in inflation is likely to push yields further up. Headline inflation hit 40.40% in October 2022, further widening the negative return spread on money market yields.
With inflation likely to continue its uptrend next month, investors are expected to seek a higher premium to curtail inflation losses.
On the other hand, yields still went up across the T-bill curve as the yield of the 91-day bill cleared at 34.39% (+105 basis points). The yields on the 182-day and 364-day tenors went up to 35.50% (+65 basis points) and 35.08% (+28 basis points), respectively.
Secondary bond market witness a slowdown
The secondary bond market witnessed a slowdown last week as total face traded amounted to ¢2.95bn, representing a 17.51% week-on-week decline.
Tight liquidity conditions hampered trading activity as the market remained net offered.
According to reports, investors mainly traded on the front end of the yield curve, as 62% of trades were executed along the 2022-2025 maturities, with yields widening by an average of 2% on the yield curve.
Latest Stories
-
Burnley score late to draw with Manchester United at Old Trafford
2 hours -
Bayer Leverkusen extend unbeaten run to 46 games after draw with Stuttgart
2 hours -
Chelsea come from two goals down to draw against Aston Villa
2 hours -
Andre Ayew scores in Le Havre’s 3-3 draw with PSG
2 hours -
GPL 2023/24: Kotoko draw with Medeama; Samartex go 7 points clear of Nations FC
2 hours -
Mahama cuts sod for construction of new multipurpose Jakpa palace in Damongo
3 hours -
NSS management assists Papao fire victims
3 hours -
EXPLAINER: Will dumsor end soon?
4 hours -
IMANI Africa takes on EC, accuses it of lying and publishing half truths
5 hours -
Manasseh Azure calls for investigation and prosecution of those responsible for GRA/SML contract
5 hours -
Kwesi Atuahene: Ghana’s health capital depends on HealthTech – Africa Center for Digital Transformation
5 hours -
13 signs your wife is planning on leaving you and you have no idea
5 hours -
IMANI Africa: Ghana’s EC’s dangerous and pathological conduct
6 hours -
If I speak there will be fire – Salah on Klopp row
6 hours -
Grieving after divorce is normal, but this particular kind of grief isn’t
6 hours